EquityPandit’s Outlook for Nifty for week (January 25, 2016 – January 29, 2016):

NIFTY:

Nifty ended the week on absolutely flat note.

As we have mentioned last week that support for the index lies in the zone of 7100 to 7200 where the lower end of the channel is positioned which is supporting the index on every downfall since the month of February – 2015. If the index manages to close below this levels then the index can drift to the levels of 6700 where 1000 Daily SMA and 200 Weekly SMA are positioned. During the week the index manages to hit a low of 7241 and bounce to close the week around the levels of 7422.

Support for the index lies in the zone of 7100 to 7200 where the lower end of the channel is positioned which is supporting the index on every downfall since the month of February – 2015. If the index manages to close below this levels then the index can drift to the levels of 6700 where 1000 Daily SMA and 200 Weekly SMA are positioned.

Resistance for the index lies in the zone of 7550 to 7600 where the index has broken down from the double bottom pattern. If the index manages to close above this levels then the index can move to the levels of 7650 to 7700 where the index has formed a gap on 07/01/2016 on gap down opening.

The index has formed a Dragon Fly doji in downtrend indicating the trend reversal.

Broad range for the week is seen from 7200 on downside to 7600 on upside.